International Petroleum Exchange - IPE

DEFINITION of 'International Petroleum Exchange - IPE'

A London-based futures and option exchange, dealing predominantly in commodities relating to energy. Available contracts included in the International Petroleum Exchange are crude oil, natural gas and coal, as well as carbon emissions governed by the European Climate Exchange. The exchange was acquired by the IntercontinentalExchange (ICE) in 2001.

BREAKING DOWN 'International Petroleum Exchange - IPE'

The International Petroleum Exchange was founded by energy traders in 1980, in response to the oil price volatility of the 1970s. Traders wanted to be able to tap into a variety of futures contracts in order to hedge their exposure, because short-term sources of oil were rapidly becoming volatile. The exchange is probably best known for Brent crude, an oil price benchmark.